State mistake puts thousands at risk of identity theft

Madison - The state Department of Revenue acknowledged Tuesday posting online by mistake the tax numbers of tens of thousands of businesses and consumers - at least the fourth time in six years the state has released confidential information and raised the fear of identity fraud.

The confidential information was posted on the agency's website as part of a report on the sales of property in the state in 2011. The release involved 110,795 taxpayer identification or Social Security numbers, though not all of those would be consumers' personal numbers that could be used for identity theft such as false credit card applications.

There is no sign that any criminals gained access to the information, but as a safeguard the state will offer free credit monitoring to consumers affected by the mistaken release - at a cost of up to $600,000, agency spokeswoman Stephanie Marquis said.

"We know the individuals who downloaded this file are using it for their own business purposes and have no malicious intent, yet we will be offering free credit monitoring for a year for the individuals who may have been impacted by this situation," Revenue Secretary Rick Chandler said in a statement.

The online report, which contains information on property sales in 2011, is used by real estate professionals such as appraisers and Realtors to track property sales and advise their clients.

From April 5 to July 23, the people who downloaded one version of the report had access to a second data file embedded in the report that contained the confidential information, though they may not have realized this, Marquis said. The report in question was downloaded 138 times.

No income, corporate or other tax information was affected and the agency's computer system remains secure, Revenue officials said.

Marquis said the agency was working to do a breakdown on how many of the 110,795 numbers were Social Security numbers, which are sensitive numbers that thieves could potentially use if they did gain access to them.

The taxpayer identification numbers of businesses are publicly available and so their release would not be harmful, she said.

The agency will be mailing out a letter to home sellers who were affected by the release of information. In the meantime, home sellers who are worried that they may be affected can call the agency at (888) 947-3453 or send an email to realestate@wisconsin.gov to learn more.

Chandler acknowledged that his agency had not followed its internal procedures in posting the confidential information.

The mistake echoed three incidents in 2006 and 2008 when the state sent out mailings with exposed Social Security numbers on them. A Department of Revenue vendor in 2006 inadvertently printed Social Security numbers on the outside of about 171,000 tax booklets, making them visible to potential identity thieves.

The state offered free credit monitoring to affected people in that incident, which cost taxpayers more than $500,000.

In 2008, the Department of Revenue sent tax forms to about 5,000 people in which Social Security numbers were visible through address windows on the envelopes.

Also in 2008, about 260,000 participants in Medicaid programs were sent a mailing that included the recipients' Social Security numbers above their name on the address labels.

In at least the two prior disclosures by the Revenue Department, there were no reported cases of identity theft, Marquis said.

About Jason Stein

Jason Stein covers the state Capitol and is the author with his colleague Patrick Marley of "More than They Bargained For: Scott Walker, Unions and the Fight for Wisconsin." His work has been recognized by journalism groups such as the American Society of News Editors, the Society of American Business Editors and Writers, and the Association of Capitol Reporters and Editors.

About Patrick Marley

Patrick Marley covers state government and state politics. He is the author, with Journal Sentinel reporter Jason Stein, of "More Than They Bargained For: Scott Walker, Unions and the Fight for Wisconsin.”